Pramodh Menon, VP – Channels, Cisco Systems, feels that the company's Intelligent Information Network initiative offers a compelling proposition that channel partners can sell to customers. The additional advantage of the program he believes is that the initiative though intended for larger enterprises can also benefit SMEs.

What exactly is the IIN initiative?
The Intelligent Information Network initiative is Cisco's vision for the future – for the next three to five years. It is based on our belief that functionality will get into networking in the future. So there is a need to integrate technologies and applications on a network so as to benefit the user. Through this program we would help our customer to integrate technologies like voice, data and video. As a next step we would look to integration of services – ie virtualization of resources like storage so that the customer can benefit in terms of costs. The next stage we would work on is to execute these various integrated applications for which we have incorporated two kinds of programs – one is application oriented networking and the other is the application network service.

As far as the advantages of the initiative go, this is a huge opportunity for networking partners because they can gain from service integration. For partners it would be a differentiation factor since the ROI is huge. We believe that organizations with many applications could benefit immensely from it in terms of cost.

Pramodh Menon VP-Channels, India and SAARC Cisco Systems (India) Pvt Ltd

Besides the IIN what are the other focus areas for Cisco when it comes to dealing with the channel?
Over the years our customers and partners have realized that we are a very channel focused company. Whether it is in terms of technologies and products, or channel initiatives, we have always kept track of the market trends and designed our programs to enable the channel to meet with required success. Keeping the changing trends in mind, we now believe that our partners need to sell solutions rather than mere products and that we need to equip them with the required skill sets to do the same.

As far as 2006 goes, our vertical strategy would help channel partners to move more efficiently towards selling solutions. In addition we have designed many new incentive programs for partners to keep them motivated to sell better. We have launched a 'solution incentive program' about a month ago, whereby we identify a key vertical say – manufacturing, and design a solution for that. We would then piece it together along with a third party vendor if needed, before selling it to the customer.

With a focus on solution selling, how would Cisco choose its partners for selling solutions?
We actually have an inventory of partner skill sets in our database, which is generated as a result of our regular training and certification programs. We are able to evaluate their skill sets and based on that, we determine which partner would execute the solution. In addition we have capacity building exercise conducted for our tier one partners to enable them to sell solutions to customer verticals like BFSI, manufacturing, government, defense and education.

What particular vertical or market segment would you concentrate your efforts on this year? How would you encourage your partners to help you reach there?
Our strengths have always been four key verticals of solution providing, enterprise, ITeS and public sector. We would work on all of them and also look to increase our reach in the mid markets and SMB sector this year. We believe our channel has a good reach and we would be evolving many new programs for our partners to help us get there.

As a start, we have designed the 'Inside Sales Initiative Program' by which we work on a database of customers for new lead generation and hand it over to our partners. Another program called the 'Opportunity Incentive Program' has been launched whereby the partners are encouraged to register themselves with Cisco either as new customers or new project deals with existing customers. The incentive would be in the form of a backend rebate to the partner, which is some percentage of the deal value.

In addition to this, whenever a partner does sales on advanced technologies like VoIP, he stands to gain a rebate on the sales done.

Incentives apart, does Cisco offer any financing options to partners/resellers in India?
Through Cisco Capital, a wholly owned Cisco subsidiary closely aligned with Cisco Systems, we provide a onestop shop for Cisco equipment and services combined with convenient, flexible financing. Working directly with Cisco product development, sales, and service organizations, Cisco Systems Capital offers tailored, innovative, and aggressive financial solutions for Cisco technology. Cisco Capital also offers the SMB/commercial market a customized, simplified leasing program called 'The Cisco Capital Commercial Easy Lease Program,' which provides competitive financing solutions to support and complement Cisco commercial/SMB growth initiatives. It provides Cisco channel partners a valuable tool to capture leasing opportunities in the rapidly growing commercial and SMB market.

By working with third-party financiers, Cisco Capital is able to provide qualified distributors and channel partners extended credit lines and payment timing to better support their business needs. Cisco Capital's financing solutions offer customers and partners the ability to acquire new technologies and refresh existing equipment through easy-to-use, flexible programs.

In addition to incentive what would you say is critical for Cisco to retain partner loyalty?
Whether it is Cisco or any other company, channel loyalty is critical for business. As far as Cisco goes, we have in time turned into reliable advisors for our channel because we regular update partners on emerging market trends, technologies and also provide the required training, selling skills and certifications. In addition our onus to go to the market together with a partner has helped us retain partner confidence and loyalty.

Subbalakshmi B.M

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